Galmudug President Ahmed Abdi Kariye’ Qoor Qoor’ signed an 80-year agreement with Turkish conglomerate Metag Holding to construct the Hobyo Port on Monday. The port, he noted, could transform Somalia’s central coastline into a key trade hub. The event in Mogadishu was attended by federal ministers, lawmakers, and business leaders.
Qoor Qoor stressed the strategic potential of Hobyo Port, particularly for Ethiopia, which lacks access to a seaport and relies on Djibouti for 90% of its imports and exports. “Ethiopia doesn’t have a port, and Hobyo offers a prime business opportunity. The challenges we face will be resolved soon, and Hobyo will become one of the largest ports in Somalia, serving several cities across the country,” Qoor Qoor said.
Metag Holding, a Turkish conglomerate established in 1967, has extensive experience in infrastructure development across Africa, including projects in Somalia, Djibouti, and Kenya. Known for its expertise in marine construction, Metag has built a reputation for delivering docks, piers, and coastal facilities.
Metag’s experience in Somalia includes the construction of military camps, airfields, and water supply systems.
The port’s development is expected to relieve congestion at Mogadishu’s overburdened port, redistributing trade and improving efficiency across Somalia’s maritime trade system. The project is also expected to deliver substantial economic benefits to Galmudug, creating jobs, improving infrastructure, and boosting local businesses. Hobyo will act as an essential export point for Somalia’s livestock and agricultural goods, supporting farmers and traders from the region.
Infrastructure remains a challenge. The roads connecting Hobyo to major inland cities like Galkayo are in poor condition, limiting the port’s capacity to move goods swiftly. Resolving these issues is critical to ensuring Hobyo’s long-term success as a trade hub.
Hobyo’s strategic position along key maritime routes linking the Middle East, Asia, and East Africa places it at the center of a burgeoning trade network. In 2019, the port signed a $170 million investment from the Qatari government through its state-owned port company, Mwani Qatar to build modern cargo-handling facilities, docking stations and expanded road networks to connect Hobyo with inland markets. In November 2020, the Galmudug State government signed a deal with a UK-based consortium, Oriental Terminal, composed of Turkish, British, and Somali companies, to build and operate the Hobyo Port. The 2020 agreement followed earlier reports that $90 million from Somali businesses would fund the project as a public-private venture. It appeared to signal the end of Qatar’s involvement.
The construction of Hobyo Port has been a priority for Galmudug’s government and is seen as a vital step in the region’s economic development. The president reiterated his administration’s dedication to realizing this long-anticipated vision, which he described as a core aspiration for the people of Galmudug.
President Qoor Qoor also called on investors and businesses to capitalize on the potential of Hobyo Port, noting that the final agreement marks the beginning of a new era for the region’s trade capabilities.
